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Multi-Level Marketing (MLM)

A structure where affiliates earn commissions not only from their own referrals but also from referrals made by affiliates they recruited. Different from legitimate multi-tier programs.

What it means

In affiliate marketing, multi-level marketing (mlm) a structure where affiliates earn commissions not only from their own referrals but also from referrals made by affiliates they recruited. Different from legitimate multi-tier programs.

Why it matters

Whether you're launching a new affiliate program or scaling an existing one, understanding multi-level marketing (mlm) helps you make better decisions about commission structures, partner recruitment, and growth tactics. Most SaaS founders run into this concept early and benefit from a clear mental model before they start building.

See also

Related terms in the affiliate marketing glossary that connect to multi-level marketing (mlm):

  • Multi-Tier Commission -- A commission structure with multiple levels where affiliates earn from their direct referrals (tier 1) and from refer...
  • Multi-Touch Attribution -- An attribution model that distributes credit across multiple touchpoints in the customer journey rather than assignin...
  • One-Time Commission -- A commission paid only once per referred customer, typically when the first purchase is made. Contrasts with recurrin...
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Multi-Level Marketing (MLM) -- Affiliate Marketing Glossary | Refgrow